Background
Furniture is the second largest source of urban waste (20 billion pounds annually), which is where Oliver Space comes in. As the only retailer that will sell you furniture and then buy it back, the company employs a full-service “circular furnishing experience,” offering both new and recommerced pieces that customers can trade back for store credit.
However, these sustainable practices were also resulting in overstocked DCs, and for Oliver Space, warehouse capacity became a huge concern. The company, which currently services six west coast and midwestern cities, found itself in need of more storage space due to overstock, customer returns, and exchanges. They came to Liquidity Services in search of a solution that would enable them to free up space quickly for more profitable, forward-bound inventory.
Solution
We recommended a multi-channel liquidation solution to help Oliver Space reach more buyers in more places.
Our first step was to conduct a 30-day market analysis to establish the right price point by listing their product on liquidation.com, our proprietary B2B auction marketplace. We utilized our award-winning Automated Sell in Place technology, which allowed Oliver Space to send product to auction virtually, eliminating the need for picking, packing, and labor until after their auctions closed. Sell in Place also automatically optimized their pallets with complementary products that would sell together for higher prices.
After establishing an optimal price point, we turned to our private direct sales network. We contracted with 30 professional business buyers nationwide to dispose of 120 truckloads of product in just 60-90 days. Total retail value was over $12 million.
We also utilized one of our single-unit D2C marketplaces, AllSurplus Deals (Phoenix) to liquidate higher-value items and boost total recovery. As a consumer marketplace, AllSurplus Deals commands higher price points and offers the convenience of curbside pickup. Liquidity Services currently operates AllSurplus Deals marketplaces in Phoenix, AZ and Hebron, KY with two more coming by the end of 2023.
